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U.S.-China Economic Tensions

Tensions over currency and trade are reaching a high pitch. We see whether a showdown with China would boost, or bust, the America.

U.S. Treasury Secretary Timothy Geithner, left, is greeted by Chinese Vice Premier Wang Qishan in Beijing, May 2010. (AP)

U.S.-China economic ties are enormous, central to the world economy, and headed into a rough patch.

American politicians, officials, even the President, are complaining loudly that China is manipulating its currency – the yuan – to gain huge trade advantages. Those advantages hurt a struggling U.S. economy and cost American jobs.

Sen. Charles Schumer (D-NY) calls China policy “a boot to the throat” of U.S. recovery. There are tense talks and tough legislation in the works.  But China has issues and an agenda and a lot of power of its own.

-Tom Ashbrook

Guests:

Sewell Chan, reporter for The New York Times.

Robert Scott, senior international economist and director of international programs at the Economic Policy Institute. Read his new paper on the U.S. trade deficit with China and its impact on American jobs.

Eswar Prasad, professor of trade policy at Cornell University, senior fellow at the Brookings Institution, and former head of the International Monetary Fund’s China Division.

Keith Bradsher, Hong Kong bureau chief for the New York Times. Read his recent article “On Clean Energy, China Skirts Rules.”

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